New F&E President Defends J-Category Tax Decision

by Jason Gorringe, Tax-News.com, London

20 January 2003

Speaking last week, the new President of Jersey's Finance and Economics Committee, Senator Terry Le Sueur defended the decision to pay back taxes owed by around 100 J-category essential States employees from the public purse.

The row began earlier this month, when Comptroller of Income Tax, Malcolm Campbell announced that rent subsidies received over several by J-category employees as part of their contract were, in fact a taxable benefit which should have been declared.

It was subsequently decided that the Committees which employed the affected workers should cover the 5-year backdated tax bill, as many of the J-category workers had been wrongly informed on exactly what benefits should have been declared.

Speaking to the Jersey Evening Post late last week, Senator Le Sueur recognised that the decision was likely to be unpopular with taxpayers, but explained that it was seen as the fairest solution:

'I understand that and I have a tremendous amount of sympathy with the view, but we cannot make these people pay because there is no blame to be attached to them,' he told the newspaper.

He also refused to point the finger at any particular sector of government or department over the misinformation given to the J-category employees, arguing that:

'What has happened has happened and I do not believe that it is helpful to try to apportion blame. The straight answer is that the States are to blame and it is a decision that the States have to bear.'

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